Institutional Interest Boosts Solana’s Standing in Crypto Market
Solana (SOL) has surged in value this year, largely due to increased institutional investment in the cryptocurrency market.
While bullish investors anticipate further growth, short traders foresee a potential correction.
Data from blockchain analysis shows that Solana has seen a significant 64.71% increase in value this year, surpassing many other assets as investment flows into its ecosystem. Referred to as the “ETH killer” by some in the community, Solana has consistently outperformed the broader market during various breakout periods.
In the last 30 days alone, Solana has experienced a 30.5% increase in value, although recent market downturns have partially erased gains made in the last quarter of 2023. Currently, Solana is down 7% for the day and 75% lower for the week, trading at $172.1.
Despite this decline, SOL’s daily trading volume has risen to $5.2 billion, marking a 45% increase today. In contrast, Ethereum, with a trading price of $3,270, remains the largest altcoin by volume and market capitalization. However, Solana has consistently outpaced Ethereum over the past year.
Ethereum has seen a 43.4% increase in value year-to-date, driven by optimistic market sentiment and anticipation of a potential spot Ethereum ETF in the United States. Nevertheless, Ethereum’s growth lags behind Solana’s due to its thriving ecosystem and appeal to traditional investors.
READ MORE: Bitcoin Analyst Forecasts Major Uptrend with Key Indicator
Solana’s rise can be attributed to growing institutional interest and a burgeoning memecoin ecosystem. Last year, the asset experienced a surge of over 900% in institutional investment, making it a favored choice among institutional investors, while Ethereum saw outflows for several weeks.
The memecoin ecosystem surrounding Solana continues to attract investor attention, contributing to the asset’s bullish performance. The market capitalization of Solana memecoins currently stands at a substantial $7.1 billion.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
